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Western Australian pastoralists are concerned they'll miss out on the benefits proposed by the Federal Government's Carbon Farming Initiative Bill.

If the bill is passed, landholders will be paid for storing carbon on farms through better land management and tree planting.

President of the Pastoralists and Graziers Association Rob Gillam says under the current land tenure, all producers on a pastoral lease will miss out on the benefits proposed by the Federal Government.

"We are a leaseholder, and the lease we have today is for the purpose of grazing and raising livestock," he said.

"We aren't allowed to take advantage of any bores, or grow sandalwood and likewise we won't be able to take advantage of any carbon credits that would come off that land."

The WA Government is in the process of changing the current land tenure, as current leases will expire in 2015.